good afternoon......great question....i suggest that you have your buyers call a mortgage professional so you can get a realistic timeframe and gameplan for them refinancing the home and paying you off.....i would be glad to pre-qual them just like any other purchase.....definitely a downpayment......if you are willing to accept checks from them, deposit them promptly .if you don't need the money right away, and hold on to them, it could put the timeframe of cashing them beyond the first of the following month..hence a thirty day late.....or money order copies work fine too..private vo's don't really work anymore...if you are considering crediting a portion of the monthly payments toward the purchase price.i suggest that you offer whatever monthly credit is agreed upon, the buyer's, at their descretion, can use the credit towards closing costs, pre-paids, pay down the principle due, or any combination of the above..if it is too specific, it could be counter-productive and compromise the next closing.......record a memorandum of land-contract......the memorandum needs to be recorded for one year for the borrowers to best utilize the first closing to rate and term refinance the home and pay you off...as well as then being able to use the market value of the home rather than the sales price........i suggest that you maintain an escrow acct........and the homeowner's insurance..since you are still the deedholded, you have the right to do that...if the house is trashed, your insurance will probably cover it.theirs might not (assuming they pay the premium) ..close the lc using a title company, not an attorney.many of them are owned or operated by real estate attorneys....pull a title committment without standard exceptions.......with exceptions is okay and will serve the purpose of closing a lc, but i think it's good business for both sides, even if you are convinced that title is clear.....also, if there is an underlying mortgage on the property, be sure to acknowledge it by having the title company close the deal subject to the existing mortgage(s)....a commt. w/o exceptions will not acknowledge the underlying loan....don't forget...budget into your anticpated numbers such that seller's title and state transfer tax is your responsibility as the seller at the time the lc is paid...it is not your buyer's cost to pay those......fha is for sure the way to go for the buyer's future financing.....the seasoning requirement for a ch-7 bk is two years from the date of discharge and a foreclosure is three years from the day of the sheriff's sale.....with re-established credit...if your buyers have both in their past......for sure have someone check them out.......an immediate spike in their credit score is not an automatic anything, do not assume anything......they should come forward mid-stream and have credit repulled to be sure they are on the right course and if need be.....change direction to get back on course so when the time comes to refinance.....and pay you.....there are no surprises..they should probably consider a credit-repair....with what you have stated is on credit....laslty....i would suggest not dating the balloon when you feel they can pay you....carry the date two or three months beyond then....a lc default looming over the closing simply in order to stay in terms would add undue pressure to both sides..even if you are willing to do it....put it in writing.....if for any reason the value slips, and the now 95% r/t doesn't quite pay off what the buyers owe you..have you discussed that as a possiblility?..........very best of luck...let me know how your deal goes....bob mcclure- success mortgage partners- plymouth, michigan.......

Both buyer and seller should talk to a attorney for advice on how to structure the land contract. Land contracts are good for all if they are set up correct.
Good luck,

I don't know of any mortgage program that's not going to make you wait 2 to 3 years unfortunately.

As to structuring a land contract to be attractive to a seller, since you're not asking for contract language specifically I can give you some general ideas on what might make a seller bite.

1) Down payment..more the merrier---or a tiered deposit ($5000 at inception, another $5000 in 12 months etc)
2) Keep period as short as possible
3) If you're unable to perform by a set date..make options good for seller---ie price goes up a set # for when you can perform, more money down, more interest on term until contract's converted etc.
4) being willing to pay more interest than market rate..7 to 8%.

Hope that helps.

Hammond,

To the best of my knowledge, "time heals all wounds" for your credit.

Suggestions how to structure LC...? In this case, I suggest seeking the advise of a real estate attorney. There are blank forms available, but these may not provide the protection you need.

Also, to the best of my knowledge, two years may be required before you would be considered after bankruptcy. In your instance, there may be alternatives. Please do not pay any money for pre-approval when speaking with local loan officers. You may also be required to pay a hefty interest rate and points, which may increase as time lapses.

Glad to hear you're back on your feet.